Thursday, January 20, 2011

Google Reports Excellent Q4 Earnings (Financial Charts, Review) *Another record-setting quarter!* GOOG


Google reported earnings on Thursday, January 20, 2011

Google Reports Excellent Q4 Earnings

Google reported quarterly financial results on Thursday, January 20 after market close. Google financial performance charts for prior quarters have been posted, along with commentary, on the Google Financial Performance page The charts are:

Google Performance by the Quarters
Earnings per Share (Diluted) and Cash Flow per Share
Total Revenues, Operating Income, Net Income
Gross Margin, Operating Margin, Net Margin
Return on Assets
Total Revenues and Earnings per Share Growth Rates
Revenue Sources
Traffic Acquisition Costs
Geographic Revenues

Summary Google reported another quarter of excellent financial results with record total revenues and net income for Q4 2010. This exceeded the records set in the prior quarter, Q3 2010. A surprise announcement was a management restructure noted below.

Income Statement Q4 2010 Google financial performance was excellent with total revenues $8.4B, net income $2.5B, earnings per share $7.81, and operating cash flow per share of $10.83. From the prior quarter Q3 2010, QoQ, total revenues were up +15.8%, net income up +17.4%, and earnings per share up +16.2%. From the prior year Q4 2009, these were up +26.5%, +28.8%, and +27.4%, respectively. Gross and net margins were above the prior quarter Q3 2010 and the prior year Q4 2009. Operating margin was above the prior quarter Q3 2010 but slightly below the prior year Q4 2010. Cash Flow from Operations per Share was an amazing $10.83. All of this data is summarized in the charts below.

Balance Sheet Q4 2010 Total assets increased +8.45% QoQ to a record $57.851B. The capital to assets ratio (total stockholders' equity divided by total assets) is a very solid 79.93%. Google is incredibly liquid with a current ratio (current assets divided by total assets) of 71.84%. Google has over $34B in cash, cash equivalents, and marketable securities! Of note was, "capital expenditures were $2.55 billion, which was primarily related to the purchase of our office building in New York City, as well as IT infrastructure investments, including data centers, servers, and networking equipment."

Management Restructure Google also announced a restructure of management "to streamline decision making and create clearer lines of responsibility and accountability at the top of the company".
* Larry Page, Google Co-Founder, will take charge of Google's day-to-day operations as Chief Executive Officer.
* Sergey Brin, Google Co-Founder, will devote his energy to strategic projects, in particular working on new products.
* Eric Schmidt will assume the role of Executive Chairman, focusing externally on deals, partnerships, customers and broader business relationships, government outreach and technology thought leadership--all of which are increasingly important given Google's global reach. Internally, he will continue to act as an advisor to Larry and Sergey.

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